Digital Central Bank Currencies (CBDCs) are on everyone’s lips. But while other countries are still conducting test runs, the Central Bank of the Bahamas announced the official launch of its digital currency project.
With the Sand Dollar, the Bahamas’ digital central bank currency (CBDC) will be available to all 393,000 residents as of October 20. This makes the archipelago the first state to officially and comprehensively start issuing a CBDC.
The announcement comes from a Facebook post of the official SandDollar.BS account. The CBDC is tied 1:1 to the Bahamas Dollar, which in turn is tied 1:1 to the US Dollar. The payment of the Sand Dollar is processed via a smartphone, with the transaction service provider NZIA on board as a technological partner.
The Central Bank of the Bahamas had already made its CBDC plans public in 2018. It started in 2019 with first test runs on the two islands of Exuma and Abaco.